Linking internal environmental capabilities to sustainable competitive advantage in manufacturing SMEs: The mediating role of eco-innovation

Mady, Khalid; Battour, Mohamed; Aboelmaged, Mohamed Gamal; Abdelkareem, Reda Shaker

doi:10.1016/j.jclepro.2023.137928

Cited by 31 publications

(14 citation statements)

References 105 publications

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“…Recent empirical studies (Makhloufi et al, 2021c;Meirun et al, 2020) found that GAC assists GEO and GIP in improving EP, denoting that H1 and H3 are supported. In addition, a study by Mady et al (2023) supported these research findings and stated that GAC positively influences green innovation and improves sustainable competitive advantages. Moreover, this study revealed that GAC positively impacts MEC, inferring that managers can rely on the GAC to overcome environmental concerns and drive GIP (Mo et al, 2022), hence, supporting H2.…”

Section: Discussionmentioning

confidence: 65%

“…Recent empirical studies (Makhloufi et al ., 2021c; Meirun et al ., 2020) found that GAC assists GEO and GIP in improving EP, denoting that H1 and H3 are supported. In addition, a study by Mady et al . (2023) supported these research findings and stated that GAC positively influences green innovation and improves sustainable competitive advantages.…”

Section: Discussionmentioning

confidence: 99%

“…Past studies (Mady et al, 2023;Makhloufi et al, 2021c;Wang et al, 2023) found that GAC positively impacted GEO and green innovation. However, understanding the process of GAC fostering GEO to enhance EP is still ambiguous.…”

Section: Hypotheses Development Based On the Theoretical Foundationmentioning

confidence: 99%

“…This could support entrepreneurs' green strategic decisions on time with accurate information and new insights about entrepreneurial opportunities (Mo et al, 2022). Literature stated that GAC assist GEO in different ways, tracking customers, competitors and markets, determining core activities that generate high return on investment, increase financial and organizational performance, brand reputation and sustainable development (Mady et al, 2022(Mady et al, , 2023Pacheco et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

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Mediation-moderation model of green absorptive capacity and green entrepreneurship orientation for corporate environmental performance

Makhloufi,

Djermani,

Meirun

2023

MEQ

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PurposeDrawing upon the natural resource-based view (NRBV), green absorptive capacity (GAC) is the backbone of firm green dynamic capabilities. It converts the developed knowledge into knowledge application. Understanding how GAC could benefit corporation environmental performance (EP) is still ambiguous and debated. Hence, this study introduced three facilitator factors, namely, managerial environmental concern (MEC), green innovation performance (GIP) and green entrepreneurship orientation (GEO), in which GAC can improve EP. The study tested the moderation effect of GAC and GEO on the MEC-GEO and the MEC-EP relationships and predicted the mediation effect of MEC, GEO and GIP on the GAC-EP relationship.Design/methodology/approachThe quantitative study used a self-administered survey and cross-sectional research design; the study collected data from top management employees working in Chinese manufacturing firms.FindingsThe results indicated that GAC positively influences MEC, GEO and GIP, and these last three constructs influence EP. While MEC positively affects GIP, the MEC-GEO relationship was insignificant. The study found that GAC moderates the MEC-GEO relationship, whereas GEO failed to do so between MEC and EP. The results confirm a partial mediation effect between GAC-EP through the three intermediary constructs.Practical implicationsTo promote EP, firms GAC should prioritize developing MEC ad GIP. Firms' GEO can exploit eco-friendly opportunities enabled by GAC, a process that bridges the existing knowledge and skills gap between MEC and GEO. GAC is one of the leading green strategic capabilities that help GEO to achieve green business growth and better EP. MEC is the process of facilitating GIP to deliver eco-products and protect the external environment. When MEC failed to address GEO's green business agenda, GEO could not enhance EP.Originality/valueThe study highlights the necessity of GAC to develop firms' green dynamic capabilities to boost EP. The study confirms GAC's vital role in strengthening the manager's environmental awareness and bridging the knowledge gap between GEO and MEC. In addition, GIP can drive entrepreneurial green opportunities and enhance EP when GAC is involved and converts knowledge creation to knowledge applications. Strategically speaking, given the importance of the triple green pillars of the NRBV, GEO would not balance green business growth and EP unless GAC leveled up MEC to match GEO's green business agenda and drive EP.

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Section: Discussionmentioning

confidence: 65%

Section: Discussionmentioning

confidence: 99%

Section: Hypotheses Development Based On the Theoretical Foundationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Mediation-moderation model of green absorptive capacity and green entrepreneurship orientation for corporate environmental performance

Makhloufi,

Djermani,

Meirun

2023

MEQ

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“…Second, we predict the peak of green innovation when SMEs seek the optimum benefits from the marketincentive environmental regulations. In this stage, SMEs develop cutting-edge ecofriendly technologies, establish strong sustainability credentials, and capture new market segments (Mady et al, 2023;Triguero et al, 2016). Green innovation becomes a key driver of their growth and profitability.…”

Section: Environmental Regulation and Green Innovation In Smesmentioning

confidence: 99%

Sustainable Innovation in Small and Medium-Sized Enterprises: Environmental Regulations and Digitalization as Catalyst

Xiumei,

Ruolan,

Shahzad

et al. 2023

The Journal of Environment & Development

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Conducting research into the multifaceted aspects of environmental regulation and the pivotal role played by digitalization in promoting sustainable innovation represents an invaluable compass guiding the path toward green development. However, it receives little attention in Small and Medium-Sized Enterprises (SMEs). This study examines the impact of environmental regulations on sustainable innovation in SMEs and the moderating role of digitalization. Findings from a panel of 871 SMEs over the period 2012-2020 reveal that command control and public-participative regulations have a U-shaped relationship with green innovation in SMEs, with digital tools accelerating their effects. Market-incentive regulations exhibit an inverted U-shaped effect, with digitalization enhancing the benefits of pursuing green incentives. These insights emphasize the importance of tailored approaches that consider regulatory diversity and the transformative potential of digitalization in promoting green development within SMEs.

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Perceived enablers and barriers impacting sustainability of small‐and‐medium sized enterprises: A quantitative analysis in four European countries

Moursellas,

Malesios,

Skouloudis

et al. 2023

Environmental Quality Mgmt

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Small and medium‐sized enterprises (SMEs) often lag behind major corporations in implementing sustainability management practices, limiting their capacity to mitigate negative social and environmental impacts. A notable challenge is the lower percentage of SMEs with sustainability objectives. This research aims to examine the links among sustainability practices and performance of European SMEs. In addition, the causal relationships between enablers/barriers for sustainability practices are also examined. To achieve these objectives, a quantitative research approach was employed. Data were collected from 420 SMEs located in the United Kingdom, France, Spain, and Greece using a structured questionnaire. Statistical modeling and inference were used to analyze the responses, separately for each of the four countries. The study revealed several significant findings. Strong relationships were identified between enablers/barriers and sustainability practices. The study found consistent links between supply chain sustainability practices and SME performance across all participating countries. The research highlighted similarities and differences in findings across various economies and geographical regions. The study's findings have important implications; For policymakers insights from this research can inform policy decisions aimed at promoting sustainability among SMEs, thus contributing to broader social and environmental goals. For SME owners and managers the findings offer guidance for improving sustainable performance through operational, planning, and strategic decisions. Policymakers should consider initiatives that encourage SMEs to adopt sustainability practices. SME owners and managers should prioritize supply chain sustainability and work on overcoming barriers identified in this study. Further research should explore specific strategies for enhancing sustainability practices in different regions and economies.

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Linking internal environmental capabilities to sustainable competitive advantage in manufacturing SMEs: The mediating role of eco-innovation

Cited by 31 publications

References 105 publications

Mediation-moderation model of green absorptive capacity and green entrepreneurship orientation for corporate environmental performance

Mediation-moderation model of green absorptive capacity and green entrepreneurship orientation for corporate environmental performance

Sustainable Innovation in Small and Medium-Sized Enterprises: Environmental Regulations and Digitalization as Catalyst

Perceived enablers and barriers impacting sustainability of small‐and‐medium sized enterprises: A quantitative analysis in four European countries

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